JPMorgan profited from soaring Swiss franc: Bloomberg
(Reuters) - JPMorgan Chase & Co's (JPM.N: Quote) currency traders made a profit of as much as $300 million when the Swiss central bank shocked markets by scrapping its cap on the franc this month, Bloomberg reported, citing two people with knowledge of the matter.
JPMorgan netted $250 million to $300 million on the day the Swiss National Bank (SNB) removed the franc's ceiling of 1.20 against the euro, Bloomberg said, citing the people. (bloom.bg/1JBAh6Y)
JPMorgan was not immediately available for comment.
The franc soared by as much as 41 percent against the euro after the three-year-old cap was abolished on Jan. 15.
Citigroup Inc (C.N: Quote), Deutsche Bank AG (DBKGn.DE: Quote) and Barclays Plc (BARC.L: Quote) ran up cumulative losses of about $400 million as a result of the SNB's move, Bloomberg quoted the people as saying.
JPMorgan told clients it would complete all orders at 1.02 francs per euro as the Swiss currency appreciated to almost 0.85 francs per euro from 1.20 on Jan. 15, Bloomberg said.
The decision allowed the traders at bank to assess their position immediately and buy or sell the franc accordingly, Bloomberg said, citing the people.
(Reporting By Sudarshan Varadhan; Editing by Ted Kerr)
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